Lumen Technologies Inc (LUMN)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	25,990,000	28,649,000	28,852,000	20,476,000	20,796,000	14,638,000	14,795,000	15,013,000	15,464,000	21,381,000	21,904,000	22,275,000	22,491,000	12,976,000	13,353,000	13,666,000	27,035,000	27,029,000	27,297,000	27,830,000
Payables	US$ in thousands	1,134,000	1,015,000	1,171,000	1,131,000	1,044,000	1,009,000	1,053,000	902,000	758,000	829,000	966,000	1,017,000	1,134,000	1,364,000	1,448,000	1,581,000	1,724,000	1,712,000	1,634,000	1,481,000
Payables turnover		22.92	28.23	24.64	18.10	19.92	14.51	14.05	16.64	20.40	25.79	22.67	21.90	19.83	9.51	9.22	8.64	15.68	15.79	16.71	18.79

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $25,990,000K ÷ $1,134,000K
= 22.92

Using the data provided for Lumen Technologies Inc payables turnover, we can observe fluctuations in the company's efficiency in managing its accounts payables over the past eight quarters. The payables turnover ratio measures how many times a company pays off its average accounts payable balance in a given period.

In Q4 2023, the payables turnover ratio was 6.30, indicating that Lumen Technologies Inc paid off its suppliers approximately 6.3 times during that quarter. This ratio decreased compared to the previous quarter's figure of 7.13 in Q3 2023. A decreasing payables turnover ratio may suggest that the company is taking longer to pay off its suppliers, potentially signaling liquidity issues or changes in payment terms.

Looking back further, the payables turnover ratio in Q4 2022 was higher at 8.28, indicating a quicker turnover of accounts payables compared to the most recent quarter. The trend of decreasing payables turnover over the past few quarters could be a point of concern, as it may imply inefficiencies in managing supplier payments or potential cash flow constraints.

Overall, fluctuations in the payables turnover ratio for Lumen Technologies Inc suggest variations in the company's ability to manage its accounts payables efficiently. Further analysis of the underlying reasons for these changes, such as changes in payment terms, cash flow constraints, or operational challenges, would provide more insights into the company's financial health and working capital management.